PayPal Confirms Its Buying Crypto Security Firm Curv

By CoinDeskabout 1 month ago

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PayPal said Monday it has agreed to acquire Israel-based Curv, a provider of cloud-based infrastructure for digital asset security.

The financial terms of the deal were not disclosed, but the payments giant said it plans to use its new purchase to accelerate and expand its initiatives to support cryptocurrencies and digital assets.

CoinDesk first reported the acquisition was in progress on March 2.

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The acquisition of Curv is part of our effort to invest in the talent and technology to realize our vision for a more inclusive financial system, saidJose Fernandez da Ponte, PayPals vice president and general manager of blockchain, crypto and digital currencies.

During our conversations with Curvs team, weve been impressed by their technical talent, entrepreneurial spirit and the thinking behind the technology theyve built in the last few years. Were excited to welcome the Curv team to PayPal, he said.

Curv co-founder and CEOItay Malinger said, Now, as the adoption of digital assets accelerates, we feel theres no better home than PayPal to continue our journey of innovation.

PayPal said it expects the acquisition deal to be completed in the first half of this year.

PayPals crypto push

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PayPal, which partnered with New York state-regulated Paxos to offer buying and selling of cryptocurrency starting in October, was known to be on the hunt for a crypto custody acquisition. The payments giant was reported to have been in talks to buy BitGo for as much as $750 million, though the deal fell through.

Multi-party computation (MPC) shops like Curv and Fireblocks are in short supply in cryptoland the latter is reportedly working on crypto custody with BNY Mellon.

For instance, Curv previously rebuffed an offer to be acquired by Facebooks crypto arm, Novi, according to a source with knowledge of that deal.

Curv is partnered with some notable crypto firms focused on Europe such as eToro and FalconX, suggesting PayPal is serious about spreading its crypto footprint outside the U.S., as well as offering a broader range of services.

As big banks look to partner up or acqui-hire on the custody front, the year ahead could see more crypto M&A from institutional players.

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